BIK on loan repayments

aFlabbyPanda

Does anyone know how to work out the BIK when an employer makes mortgage repayments on behalf of an employee directly to the lender?

the house has and will always be owned by the employee if that makes any difference.

jackbhoy

BrianjG wrote:

Does anyone know how to work out the BIK when an employer makes mortgage repayments on behalf of an employee directly to the lender?

the house has and will always be owned by the employee if that makes any difference.

Would the amount the employer paid not be liable to the same income tax as if he/she paid you that amount directly .i.e. the BIK would be the full amount they paid for you? AFAIK thats how it is but I'm not an expert. If it wasn't then every employer could offer to pay chunk of employees salary like this and bypass PAYE, don't think Revenue are stoopid enough to let that happen....

aFlabbyPanda

jackbhoy wrote:

Would the amount the employer paid not be liable to the same income tax as if he/she paid you that amount directly .i.e. the BIK would be the full amount they paid for you?

I've no idea, thats why I asked the question.

dotsman

Unless your empoyers have some crafty acocuntants, BIK is applicable on the full amount.

aFlabbyPanda

yes I'm expecting to pay BIK. what I'm asking is how much? i.e. what % of the payment will I be liable for and how is it worked out?

jackbhoy

BrianjG wrote:

yes I'm expecting to pay BIK. what I'm asking is how much? i.e. what % of the payment will I be liable for and how is it worked out?

Well as previous poster said you'd have to pay it on the full amount they paid for you, in percentage terms that'd be 100

You'd pay tax on this as if it was paid to you as a wage, so if you are on lower tax band you'll pay 20% or 40% on the higher....